IFRS vs US GAAP

Question

IFRS vs US GAAP

Accepted Answer

IFRS and US GAAP are two sets of accounting standards used by companies worldwide, with key differences in principles and rules.

IFRS (International Financial Reporting Standards) is principles-based, focusing on the conceptual framework and objectives of financial reporting.
US GAAP (Generally Accepted Accounting Principles) is rules-based, providing specific guidelines and detailed rules for accounting treatments.
IFRS allows more flexibility and judgment in financial reporting, while US GAAP tends to be more prescriptive and detailed.
IFRS is used in over 120 countries, including most of Europe and many emerging markets, while US GAAP is primarily used in the United States.
Differences between IFRS and US GAAP can impact financial statements, such as revenue recognition, inventory valuation, and lease accounting.

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